8 Figure Formula Workbook - Amazon...

8 Figure Formula Workbook

WORKBOOK

8 Figure Formula Workbook

Table of Contents

1. Introduction .......................................................................................................1

2. Setting Your Overall Goals................................................................................2

3. Establishing Your Asset Goals..........................................................................3

4. Establishing Your Metric Goals.........................................................................9

5. Setting Your Strategy......................................................................................13

6. Building Systems ............................................................................................15

7. Multiplier Tactics .............................................................................................17

8. Creating Your Execution Plan & Dashboard ...................................................22

8 Figure Formula Workbook Page 1

1. Introduction Welcome to the 8 Figure Formula Workbook. This workbook should be completed alongside the 8 Figure Formula video modules. The videos take you through various lessons that will give you the knowledge and guidance to complete the exercises herein. Congratulations on taking this key step in dramatically growing your business and improving your success!


2. Setting Your Overall Goals 1. Exit Goal (ignore if you plan to never exit)

We will sell our company for $ ____________ on _______________. Our annual run rate at exit will be $ ____________ in revenues and $ ____________ in net profit. 2. 5-Year Goal (ignore if you plan on exiting within 5 years) In ____________ (year five years from now), we will generate $ ____________ in revenues and $ ____________ in net profit. 3. 1-Year Goal In _______ (year), we will generate $ ____________ in revenues and $ ____________ in net profit. 4. Next Quarter Goal In _________________ (quarter, year), we will generate $ ____________ in revenues and $ ____________ in net profit. 5. Next Month Goal In _________________ (month, year), we will generate $ ____________ in revenues and $ ____________ in net profit.


3. Establishing Your Asset Goals 1. Customers/Marquee Customers

• Is this asset currently relevant to your business? ___________________

o If no, could this asset be relevant to your business? ____________

o If so, how? ____________________________________________

• How much value can this asset have to your business? ______________

• How might you build this asset?_________________________________

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• What are your goals for building this asset?

o Quarterly goal _________________________________________

o Annual goal __________________________________________

o 5-year goal ___________________________________________

o Exit goal______________________________________________

2. Products



o If so, how? ____________________________________________



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o Quarterly goal _________________________________________

o Annual goal __________________________________________

o 5-year goal ___________________________________________

o Exit goal______________________________________________


3. Services



o If so, how? ____________________________________________



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o Quarterly goal _________________________________________

o Annual goal __________________________________________

o 5-year goal ___________________________________________

o Exit goal______________________________________________

4. Technology/Intellectual Property



o If so, how? ____________________________________________



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o Quarterly goal _________________________________________

o Annual goal __________________________________________

o 5-year goal ___________________________________________

o Exit goal______________________________________________


5. Distribution Network



o If so, how? ____________________________________________


• How might you build this asset? What potential distributors could you get?

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o Quarterly goal _________________________________________

o Annual goal __________________________________________

o 5-year goal ___________________________________________

o Exit goal______________________________________________

6. Location(s)



o If so, how? ____________________________________________


• How might you build this asset? What potential locations could you get? _

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o Quarterly goal _________________________________________

o Annual goal __________________________________________

o 5-year goal ___________________________________________

o Exit goal______________________________________________


7. Reputation/Brand



o If so, how? ____________________________________________



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o Quarterly goal _________________________________________

o Annual goal __________________________________________

o 5-year goal ___________________________________________

o Exit goal______________________________________________

8. Team/Employees

• Is this asset currently relevant to your business? YES

• How much value can this asset have to your business? A LOT


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o Quarterly goal _________________________________________

o Annual goal __________________________________________

o 5-year goal ___________________________________________

o Exit goal______________________________________________


9. Financial Savings



o If so, how? ____________________________________________



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o Quarterly goal _________________________________________

o Annual goal __________________________________________

o 5-year goal ___________________________________________

o Exit goal______________________________________________

10. Systems/Processes Covered in more detail in Module 6. 11. Strategic Partnerships



o If so, how? ____________________________________________


• How might you build this asset? What potential strategic partners could

you get? __________________________________________________

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o Quarterly goal _________________________________________

o Annual goal __________________________________________

o 5-year goal ___________________________________________

o Exit goal______________________________________________


12. Plants, Operating Equipment



o If so, how? ____________________________________________



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o Quarterly goal _________________________________________

o Annual goal __________________________________________

o 5-year goal ___________________________________________

o Exit goal______________________________________________

13. Vehicles, Furniture, Real Estate



o If so, how? ____________________________________________



__________________________________________________________


o Quarterly goal _________________________________________

o Annual goal __________________________________________

o 5-year goal ___________________________________________

o Exit goal______________________________________________

(Note, raw materials, inventory and cash are all included in the video modules and are all real assets, but do not require in depth planning/goal setting.)


4. Establishing Your Metric Goals

A. Long-Term Metrics 1. Sales/Revenues ($)

• What are your long-term goals for this metric?

o 5-year goal ___________________________________________

o Exit goal______________________________________________

2. Net Income


o 5-year goal ___________________________________________

o Exit goal______________________________________________

3. Customer Base


o 5-year goal ___________________________________________

o Exit goal______________________________________________

B. Short-Term Metrics The following chart and exercise will help you determine which metrics or Key Performance Indicators (KPIs) you need to measure and track in your business. In summary, any KPI that will help you manage or improve your business should be measured. Add KPIs by answering this question: Imagine there are 5 direct competitors in your business, and that you were given a blank check and the ability to buy any of these companies. And, as a result, each of these companies opened up their books to you? What key metrics would you look at for each company in determining which to buy/which would offer the greatest value? (Each of these metrics should be included).


Metric Measure? (Y/N) Monthly Goal Quarterly Goal Annual Goal Topline Metrics Sales/Revenues ($) Net Income Customer Base

# new customers # customers dropped

Other: ___________ Other: ___________

Marketing Metrics # Leads # Press Mentions # Emails Sent # Website Visitors # Website Conversions

# Facebook Fans # Twitter Followers Other: ___________ Other: ___________ Other: ___________ Other: ___________

Sales Metrics # Proposals # Sales # Upsells $ Upsells Other: ___________ Other: ___________ Other: ___________ Other: ___________

Operations Metrics # of products manufactured

# of service contracts fulfilled

# of defective products/services

% late service or late delivery

Other: ___________ Other: ___________ Other: ___________ Other: ___________


Metric Measure? (Y/N) Monthly Goal Quarterly Goal Annual Goal

Customer Satisfaction Metrics # of customer returns

# of customer complaints received

# customer problems resolved within 24 hours

Other: ___________ Other: ___________ Other: ___________ Other: ___________

HR Metrics New employee hires Employees left Other: ___________ Other: ___________ Other: ___________ Other: ___________


C. Health Metrics Indicated on the following chart which health metrics you need to measure and track in your business. Metric Measure? (Y/N) Financial Metrics Payroll as % of Sales Cost of Goods Sold as % of Sales Marketing costs as % of Sales Operating costs as % of Sales Cash Other: _________________________ Other: _________________________ Other: _________________________ Other: _________________________

Financial Health Ratios/Metrics Current ratio Quick ratio Cash ratio Debt ratio Inventory Turnover ratio Receivables Turnover ratio Other: _________________________ Other: _________________________ Other: _________________________ Other: _________________________ Financial ratios defined:

• Current ratio = Current assets / Current liabilities Quick ratio = (Current assets – inventory) / Current liabilities

• Cash ratio = Cash / current liabilities

• Debt ratio = (Total assets – total equity) / Total assets)

• Inventory Turnover ratio = Cost of goods sold / Inventory

• Receivables Turnover ratio = Sales / Accounts receivable


5. Setting Your Strategy Your strategy is essentially the asset and metric goals you have already set. In Module 7 (Execution Plan), you will transition these goals into an Action Plan. For now, let’s improve the two biggest potential strategic flaws. 1. Lack Customer Residuals

• How can you change your product or service offering to get residuals?

o How can you change your product or service offering to get recurring or contractually recurring revenues?

o How can you change your product or service offering to increase switching cost?

• How can you diversify your customer base and/or get better customers? Write down your answers below, and then include these strategies in Module 3 under the assets (products or services) you need to build. _______________________________________________________________

_______________________________________________________________

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2. Lack of Resources

• If you lack human resources?

o Who do you need to hire to give you the human resources you need?

Write down your answer below, and then include it in Module 3 under the asset “Team/Employees”. __________________________________________________________

__________________________________________________________

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• If you lack financial resources?

o Consider bank loans, angel investors, and/or creative financing (particularly vendor or customer financing).

If applicable, write down below which types of financing you will seek. __________________________________________________________

__________________________________________________________


6. Building Systems 1. Determining Systems You Must Build in Your Business Build systems for any process that occurs in your business, that is performed frequently, and, that if completed in a predicable, consistent manner, would increase the value and profits of your business. Write down all the systems you need to create in your business: _______________________________________________________________

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2. Process for Creating Systems Follow the following process for creating systems:

1. Assign person in your organization who will lead the development of the system

2. Identify where the system starts and the ideal outcome of the system

3. Create the system Process Map

4. Create Standard Operating Procedures (SOPs) For Specific Function within the system

5. Create Policies & Guidelines to Follow 3. Establish Systems to Manage your Systems

1. Purchase a binder in which you will include printouts of all the systems and SOPs you create.

2. Keep a running list of problems you incur, and then create guidelines and

systems that will avoid them in the future.

3. Set up a project management system. Consider using Basecamp as your task management/project management system. http://basecamphq.com/.


7. Multiplier Tactics Take notes below on the 12 multiplier tactics and circle the ones you will employ. Productivity & Leadership Tactics 1. Constantly set goals and work in time chunks _______________________________________________________________

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2. Have TEAM Goal Setting _______________________________________________________________

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3. Delegate More Effectively _______________________________________________________________

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4. Identify What You Don’t Know (And Then Get It) _______________________________________________________________

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5. Don’t Interrupt Your Goals _______________________________________________________________

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6. Repeat What’s Working _______________________________________________________________

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7. Hang Out With Winners _______________________________________________________________

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Marketing & Sales Tactics 8. Really Know Your Customers _______________________________________________________________

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9. Use The 80/20 Rule On Your Customers _______________________________________________________________

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10. Position Your Offer With Information Marketing _______________________________________________________________

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11. Use Upsells _______________________________________________________________

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12. Use Multiple Marketing Methods _______________________________________________________________

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8. Creating Your Execution Plan & Dashboard Watch the video and complete the Excel dashboard. Dashboard sections:

1. Overall Goals 2. Asset Goals 3. Metric Goals 4. Metric Charts 5. Big Picture Gantt Chart 6. Gantt Charts - Individual Projects

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